{"id":15536,"date":"2020-10-12T16:17:54","date_gmt":"2020-10-12T20:17:54","guid":{"rendered":"https:\/\/trades.iwopremium.com\/?p=15536"},"modified":"2020-10-12T16:17:54","modified_gmt":"2020-10-12T20:17:54","slug":"proactive-spreads-october-12th-2020-dkng-cost-adbe","status":"publish","type":"post","link":"https:\/\/trades.iwopremium.com\/proactive-spreads-october-12th-2020-dkng-cost-adbe\/","title":{"rendered":"Full Time Profits, October 12th, 2020 – DKNG, COST, ADBE"},"content":{"rendered":"

\"\"<\/p>\n

Markets accelerated higher today as there were more buyers than sellers.<\/p>\n

Let’s not overthink it here! We’ve got the election and fiscal deal narrative, but take a step back and think about the structure of the market for a minute…<\/p>\n

After going parabolic at the end of summer, large cap stocks got smashed as everyone was leaning the wrong way. We then had a few months of chop– if you tried to nail a big move in FANG stocks you got chopped up to death.<\/p>\n

And here we are, rallying with as few people on board as possible– traders got chopped up to death in the fall, and investors are still overhedged into the election.<\/p>\n

Is it any surprise that we saw a move?<\/p>\n

Stocks are a big overbought. The S&P 500 rallied over 5% in a 4 day window, and that doesn’t happen often when we are near all time highs. And we’ve got headline risk, where one tweet can send this market down 1% in an hour.<\/p>\n

Yet as it stands, this is not bearish tape. Unless the major markets take out Friday’s lows, we need to assume trend continuation.<\/p>\n

Trade #1: DKNG<\/h2>\n

\"\"<\/p>\n

After a parabolic push into the 60s, the stock has round-tripped the move. Support levels are coming up quick– the rising 50 day moving average, prior price support, and previous resistance. I like scaling in here to align with the longer term trend.<\/p>\n

Trade Setup<\/strong><\/p>\n

Expected Price: 50.75<\/p>\n

Sell to Open DKNG 30Oct20 43\/40 Put Spread<\/strong><\/p>\n

Tier 1: Enter at 0.45, Exit at 0.01<\/p>\n

Tier 2: Enter at 0.63, Exit at 0.15<\/p>\n

Tier 3: Enter at 0.81, Exit at 0.19<\/p>\n

Stop Out If Close Under 42.89<\/p>\n

Trade #2: COST<\/h2>\n

\"\"<\/p>\n

Very nice move– we are going to start looking for the first pullback to enter long.<\/p>\n

Trade Setup<\/strong><\/p>\n

Expected Price: 367.94<\/p>\n

Sell to Open COST 20Nov20 345\/340 Put Spread<\/strong><\/p>\n

Tier 1: Enter at 0.7, Exit at 0.04<\/p>\n

Tier 2: Enter at 0.98, Exit at 0.17<\/p>\n

Tier 3: Enter at 1.26, Exit at 0.21<\/p>\n

Stop Out If Close Under 344.89<\/p>\n

Trade #3: ADBE<\/h2>\n

\"\"<\/p>\n

This stock just started its move and isn’t overextended– even if it finds resistance it will base out under 530 and we can look to the long side.<\/p>\n

Trade Setup<\/strong><\/p>\n

Expected Price: 510.84<\/p>\n

Sell to Open ADBE 20Nov20 465\/460 Put Spread<\/strong><\/p>\n

Tier 1: Enter at 0.9, Exit at 0.2<\/p>\n

Tier 2: Enter at 1.26, Exit at 0.51<\/p>\n

Tier 3: Enter at 1.62, Exit at 0.67<\/p>\n

Stop Out If Close Under 464.89<\/p>\n","protected":false},"excerpt":{"rendered":"

Markets accelerated higher today as there were more buyers than sellers. Let’s not overthink it here! We’ve got the election and fiscal deal narrative, but take a step back and think about the structure of the market for a minute… After going parabolic at the end of summer, large cap stocks got smashed as everyone […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_bbp_topic_count":0,"_bbp_reply_count":0,"_bbp_total_topic_count":0,"_bbp_total_reply_count":0,"_bbp_voice_count":0,"_bbp_anonymous_reply_count":0,"_bbp_topic_count_hidden":0,"_bbp_reply_count_hidden":0,"_bbp_forum_subforum_count":0,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":""},"categories":[24],"tags":[],"_links":{"self":[{"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/posts\/15536"}],"collection":[{"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/comments?post=15536"}],"version-history":[{"count":1,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/posts\/15536\/revisions"}],"predecessor-version":[{"id":15541,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/posts\/15536\/revisions\/15541"}],"wp:attachment":[{"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/media?parent=15536"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/categories?post=15536"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/tags?post=15536"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}